Gold prices rebound from six-month low on short-covering

Gold prices rebounded from a six-month low on Thursday after short-covering buying helped reverse part of an earlier selloff, according to Asharq Al-Awsat. The recovery came after gold had fallen to its weakest level in six months amid heavy volatility in global markets.

The move followed a sharp drop that had left traders and investors reassessing the direction of the metal, which is often viewed as a safe haven during periods of uncertainty. As reported by Asharq Al-Awsat, the price slump was tied to a broader market mood shaped by ongoing war and rising expectations of a U.S. interest-rate increase, both of which pressured bullion.

The volatility also spilled into Egyptian markets, where Asharq Al-Awsat said the sudden swings once again confused buyers and sellers. Traders there saw only a slight recovery after the earlier decline pushed gold to its lowest point in half a year, underscoring how quickly local pricing can react to movements in the international market.

Another report from the same outlet said gold had been headed for its worst quarterly performance in a decade before Thursday’s rebound, highlighting how weak sentiment had become. That makes the recovery significant for investors, jewelers, and consumers watching whether the metal can stabilize after a period of steep losses.

For now, the rebound appears to reflect technical buying rather than a clear change in the wider outlook. The next move in gold will likely depend on how global markets respond to war-related uncertainty, U.S. monetary policy expectations, and whether traders continue to cover short positions after the recent selloff.